TransNamib eyes N.dollars 2.1 billion loan from DBSA

TransNamib’s executive for engineering and technical services, Bertus Eksteen, said the entity is in the process of acquiring a N.dollars 2.1 billion from the Development Bank of South Africa to purchase new locomotives in order to meet future volume projections and become financially viable again.

Eksteen revealed this during a meeting between TransNamib management and the Parliamentary Standing Committee on Economics and Public Administration here on Monday.

He said the funds will be used to acquire 20 new locomotives, remanufacture 10 locomotives, 300 wagons and tankers and upgrade workshop equipment, among others.

“We are now in the final stages of the loan application, which is satisfying all the conditions that the bank requires us to have satisfied and once everything is done, we can then procure the locomotives and the rolling stock, the road to success is possible, but we need assistance,” he said.

TransNamib has also applied for a N.dollars 600 million loan from the Development Bank of Namibia.

Eksteen said currently TransNamib has 78 locomotives, of which 26 are in operation, while the company needs at least 34 locomotives per day for adequate performance, adding that out of the 26 locomotives, 20 are between 50 and 60-years-old, five are six years old and one is in use for 17 years.

“Aging fleet and parts procurements remains a challenge, delivery of the parts can take up to 12 months because it is difficult to get the parts as these locomotives are old. We need at least N.dollars 40 million annually to maintain the fleet we have and currently we have a N.dollars 135 million backlog when it comes to maintenance,” he said.

Eksteen added that the profitability of a railway operation depends heavily on the condition of the railway line, adding that for TransNamib to be profitable it needs heavier, longer and faster trains and a network extent to neighbouring countries such as Botswana.

He added that the Ministry of Works and Transport, through the Road Construction Company, plans to upgrade a 40-kilometre portion of the railway line between Keetmanshoop and Aus to the tune of N.dollars 109 million and the upgrade is expected to start in September and will take 24 months to complete.

Source: Namibia Press Agency